Retirement Protection and American Savings Patterns
A new study that surveyed 1,900 Americans found:
- 50% of Americans said they “certainly would not” or “probably would not” be able to come up with $2,000 in the event of an unanticipated event, such as an unexpected medical bill.
- The majority said they would have to rely on more than one method to come up with the emergency funds.
- 60% said they would dip into savings
- 34% said they would have to ask family and friends for help
- 29% said they would have to resort to credit cards, a home equity line of credit, reverse mortgage or unsecured loan
– Lusardi, Annamaria, Daniel Schneider, and Peter Tufano. “Financially Fragile Households: Evidence and Implications.” The National Bureau of Economic Research. Bulletin on Aging and Health, May 2011. Web. <http://www.nber.org/papers/w17072>.
- In 2007, the median income of households that include any working-age people with disabilities in the U.S. was $38,400.
– U.S. Census Bureau, American Community Survey, 2007
- Over 70% of working Americans do not have enough savings to meet short-term emergencies.
– National Investment Watch Survey, A.G. Edwards Inc., 2004
- Over 50% of the workforce has no private pension coverage and a third have no retirement savings.
– Social Security Administration, Fact Sheet 2007
- 71% of American employees live from paycheck to paycheck.
– American Payroll Association, “Getting Paid in America” Survey, 2008
- Only 40% of adult Americans have separate emergency savings funds.
– National survey commissioned by the Consumer Federation of America (CFA) and carried out by Opinion Research Corporation, February 2007
- More than 35% of workers with 401(k) or IRA plans have not thought about or don’t know what would happen to their contributions if they were unable to earn an income for a period of time.
– Council for Disability Awareness, 2007 Disability Survey